Y2K may trigger downturn - U.S. Senate panel
WASHINGTON, Sept 22 (Reuters) - The Year 2000 computer glitch is likely to rock world trade and may end more than eight straight years of U.S. economic growth, a special Senate panel studying the problem said on Wednesday.
In a report marking 100 days left to the year change, the bipartisan Committee on the Year 2000 Technology Problem said it was also ``extremely concerned' about Y2K's impact on longer-term U.S. national security and strategic interests.
``Severe long- and short-term disruptions to supply chains are likely to occur' as a result of Y2K-related system failures, the panel said in its 288-page final report.
``Such disruptions may cause a low-to-moderate downturn in the economy, particularly in industries that depend on foreign suppliers,' it said. The U.S. economy, a locomotive for the world, has been expanding since March 1991.
The committee listed its greatest concerns as China, Russia, and Italy plus a handful of U.S. oil suppliers: Venezuela, Nigeria, Saudi Arabia, Colombia and Kuwait.
``Several important U.S. trading partners are severely behind in addressing the Y2K problem ... and are not likely to avoid significant disruptions,' the report said.
Other countries' Y2K-related problems may wash up on U.S. shores ``in the form of recession, lost jobs or requests for international assistance,' it said.[...]
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Cheryl
P.S. CNBC has been highlighting a company called EPAY today - which dropped 37% because of earnings warnings based on "Y2K concerns". |
